Incorporation of a company in Japan by a foreigner. Bank account for payment of capital.

When establishing a company in Japan, it is necessary to pay the capital into a bank account.The payment must be made before the registration of the company.

In principle, the bank account to which the capital is to be paid should be the personal bank account of the founder. It should not be an account of the company. At this stage, the corporation itself does not exist yet.
However, suppose the promoter does not have a bank account.

In that case, it is allowed to use the personal account of the representative director or director (Ministry of Justice, Civil and Commercial Code No. 41, March 17, 2017,)

If the payment is to be made to the director’s personal account, a power of attorney certifying that the founder has delegated to the director the authority to receive the payment is required.

If all of the founders and directors do not have a domicile in Japan, the account to which the capital is paid can be third-party’s. In other words, if there is a collaborator who has a bank account in Japan, the capital can be transferred to that person’s bank account.

Financial institutions for the payment of capital are not limited to the domestic head office and branch offices of Japanese banks but can also be overseas branches. It is also possible to use a foreign bank’s branch in Japan.

So, when a foreigner comes to Japan with a 6-month Business Management Visa, is it possible to use a third party’s bank account as the account to which the capital is paid?
The code mentioned above states as follows,

“Exception. If it is clear from the documents attached to the application for registration that all of the founders and directors have no domicile in Japan, the account holder of the bank book may be someone other than the founder and directors at the time of incorporation.

Therefore, if the founder resides in Japan, a third party’s bank account may not be used.